Post Grant Proceedings Study

2014 IPR STUDY - SOURCE DATA.

979 IPRs filed by April 1, 2014 •  PTAB  ac(vity  as  of  October  1,  2014  •  NPE-­‐status  of  respondent    •  Tech-­‐class  of  challenged  patent  •  Parallel  li(ga(on  for  all  ins(tuted  IPRs  

2014 STUDY - IPR STATUS (AS OF OCT 1, 2014). Pending: 413 (42%) •  No institution decision yet: 4 •  Instituted: 409 Not Instituted: 191 (20%) •  On the merits: 132 •  Untimely/duplicative: 59 Settled: 215 (22%) •  Before institution decision: 87 •  After IPR instituted: 128 Final Decision / Req Adv Judg: 160 (16%)

2014 STUDY - IPR DURATION (MONTHS).

All Terminated: 9 Not Instituted: 6 Settled: 7 Final Decision / Req Adv Judg: 15 (36 month average pendency of IPRx)

2014 STUDY – INSTITUTED IPR

Institution Rate: 78% 84% 87% (vs. 93% IPRx) •  691 IPRs instituted for at least 1 claim •  191 decision not to institute •  132 decisions not to institute on the merits

And . . . 22 of these 132 “no” decisions involve a patent for which another IPR was instituted. • Less than 13% of IPRs challenging a unique patent were

not instituted.

2014 STUDY – INSTITUTED IPR

In 74%, all challenged claims were instituted

•  For the “average” instituted IPR: •  16 claims challenged •  14 claims instituted •  11 claims invalidated or disclaimed

•  Stats very consistent across tech categories

One motion to amend granted (in 160 FWD/RAJs) •  (vs. 61% of IPRx’ed patents surviving with amended claims)

2014 STUDY – FWD & RAJ

Among IPRs with FWD and/or Request for Adverse Judgment (RAJ)

•  In 77.5%, all instituted claims invalidated or disclaimed

•  In 65%, all challenged claims invalidated or disclaimed

•  (By comparison, just 31% of IPRxs ended with all claims invalidated or disclaimed)

2014 STUDY – NPE VS. OTHERS

  NPEs Prod.  Cos. Share  of  all  IPRs    48%   52%  

Ins4tu4on  Rate   89%   80%  

Among  ins4tuted  IPRs,  share  of  challenged  claims  ins4tuted  

91%   86%  

Among  merits  decisions,  all  claims  

eliminated    75%   78%  

2014 STUDY – PARALLEL LITIGATION

Among instituted IPRs •  80% challenge a currently litigated patent between same parties •  10% challenge a never-litigated patent

Suits co-pending instituted IPR: 249 •  With decided motion to stay: 171 •  Grant rate: 82%

•  Motion filed pre-Markman: 140 •  Grant rate: 84%

(40-50% likelihood of stay for Reexam)

2014 STUDY – STAY RATES BY VENUE

2014 STUDY – STAY RATES BY VENUE

UNIFIED STUDY - DISTRICT COURT VS. PTAB.

Unique Patents Asserted in Litigation Since 2012 •  Approximately 13,000 Patents used in litigation •  12% challenged at the PTAB

UNIFIED STUDY – CLAIM ANALYSIS OF TERMINATED. Claim by Claim Outcomes for Terminated Cases (Excludes Pending Cases) •  62% Survival Rate for Claims in All Tech Centers •  65% Survival Rate for High-Tech Claims •  63% Survival Rate for Bio/Chem/Pharma Claims

All Tech Centers   Only High-Tech   Only Bio/Chem/Pharma  

UNIFIED STUDY CLAIM ANALYSIS OF FWD. Claim by Claim Outcomes for Final Written Decisions Only (Only Cases with Final Written Decisions) •  26% Survival Rate for Claims in All Tech Centers •  28% Survival Rate for High-Tech Claims •  23% Survival Rate for Bio/Chem/Pharma Claims

All Tech Centers   Only High-Tech   Only Bio/Chem/Pharma